As we see a surge in the popularity of short-term rental platforms, we’re also seeing a rise in landlords turning their properties into holiday lets. However, switching to a short-term rental is no easy task, with an array if unique challenges and risks to be aware of.
So, this raises a question. Does a standard landlord insurance policy cover short-term lets or do you need a specialised insurance policy? In this guide, we’ll explore the differences between holiday lets and standard rentals and the advantages of taking out specialist holiday let landlord insurance for the maximum coverage.
How Holiday Lets Differ from Standard Rentals for Landlord Insurance
Holiday lets generally differ from standard rentals in terms of occupancy, tenant turnover, and usage patterns. Unlike long-term rentals, where tenants stay for extended periods, holiday lets have frequent guest turnover – no sooner has one guest checked out is the next one often checking in.
Unsurprisingly, this increased footfall poses a different set of risks to those that a standard rental property will face. This includes higher wear and tear on the property, greater risk of accidental damage, and a higher likelihood of liability claims.
Impact on Landlord Insurance
Standard landlord insurance policies are typically designed to cover long-term rental agreements. This means they won’t usually provide enough protection for the unique risks posed by holiday lets.
Here’s a breakdown of why:
- Increased Risk Exposure: More guests mean more potential for accidents and damage.
- Higher Liability Concerns: Short-term guests may not be as familiar with the property, increasing the risk of personal injury claims.
- Contents Coverage: Items in a holiday let might face higher risk due to frequent use by different guests.
To ensure you’re adequately protected, it’s therefore essential to consider specialised holiday let landlord insurance or short-term landlord insurance.
Specialist Short-Term Landlord Insurance Explained
Opting for holiday let landlord insurance offers comprehensive protection tailored to the unique risks associated with holiday lets. We’ve covered this is detail below.
Comprehensive Coverage
Specialist insurance policies can be designed to cover the specific needs of short-term rental properties. This includes cover for:
- Accidental Damage: Protection against accidental damage caused by guests.
- Public Liability: Higher levels of public liability coverage to protect against claims made by guests for injury or damage.
- Loss of Income: Coverage for loss of rent income due to property damage or other insured events.
- Theft and Vandalism: Coverage for theft and vandalism by guests or other individuals.
Tailored Solutions from Higos
At Higos, we offer tailored landlord insurance for short-term holiday lets. This includes flexibility in coverage options and the ability to customise policies based on the specific requirements of your property.
Our experts treat each policy as unique. We’ll take the time to know your let property inside and out, how you intend to use it, and the unique risks it’s likely to face before matching you up with comprehensive coverage. So, whether it’s accidental damage cover to protect against those dreaded wine spills on an expensive carpet, or injury cover for wet floors and steps, there’s a solution.
If you’re looking for help with your landlord insurance for short-term holiday lets, give our friendly team a call on 01458 270324. We offer independent advice and expert knowledge based on our long-term relationships with top insurers. Request a call back today.